Inflation in FY26 and FY27 is expected to remain far below the Reserve Bank of India’s (RBI) estimates, according to a new report by the State Bank of India (SBI). The report cited several factors that will help to soothe price pressures, including a strong monsoon, higher kharif crop sowing, healthy reservoir levels, ample foodgrain stocks, and the major factor of rationalisation of GST rates, which were implemented recently. Considering these factors, the RBI had already lowered its CPI inflation forecast for FY26 by 50 basis points to 2.6%, marking a 160 basis point reduction from its April projection. However, in the new report, SBI suggests that inflation could be even lower, in both the current and the upcoming financial year. "RBI has revised downwards its FY26 CPI inflation

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